A Common Creditor and Collector Ruse

Occasionally a client will wish to close one of his credit card accounts that had previously been included in his debt settlement program. When asked for the reason, the client typically informs us that the creditor claims they do not work with companies like Provanta (we can always prove otherwise), but that the creditor is wiling to work something out with the client directly. As a result, the client then wants to try to settle this particular account on his own. 

The collection agent is being less than honest with our mutual client.  In this situation, we must explain that creditors will often do or say almost anything to avoid having to work with companies like Provanta, because they know our goal is to achieve for our clients the lowest possible settlement, and we’re extremely effective at it. And it’s not about simply saving the most money, but rather to get the settlement figures low enough across the board, in order to settle all the accounts in a structured way that’s equitable for all. But collectors, whether part of the original creditor, or an agent, often prefer to work with the client directly, bypassing Provanta, because negotiating with a client who’s a novice to debt negotiation is easier than negotiating with our trained professional representatives who’ve “heard it all a million times.”  The creditor has a better chance of getting more money directly from our client than through our program, resulting in an inequitable result when considering the portfolio as a whole. They’re just trying to jump to the head of the line.  

It’s important that our clients understand that though they have the final say in everything, Provanta is unable to work effectively if the client is undermining our efforts by communicating directly. Moreover, doing so only encourages the creditors to keep calling and pushing, trying to undermine the our client’s confidence in Provanta. It becomes a self-fulfilling prophecy: the creditor or collector refuses to deal with Provanta, because they don’t need to, because they can deal direct. I can’t blame them, but this is a direct effect of the creditor/collector’s ruse, and the client falling for it. By giving their creditors the silent treatment, our clients are sending a message loud and clear: that they are committed to the debt settlement program, and that the fastest way for the creditor to get resolution and some recovery is to work with Provanta. 

Technorati Tags: creditor harassment, debt collector harassment, FDCPA, Fair Debt Collection Practices Act